Lighthouse Financial Corp. provided a $1.7 million revolving line of credit and a $350,000 term loan facility to an Atlanta, GA based fabricator and distributor of pipes, valves, and fittings. Founded in 1998, the company started primarily as a fabricator serving the fire protection market. From those early days with only one welding machine, one threading machine and one grooving machine, the company has grown into a full service fabrication and distribution business with eight welding stations, twelve threading stations, four grooving stations and perhaps the largest diverse inventory under one roof in the south.
The credit facility was designed to refinance the existing line of credit and term loan and provide additional working capital to bring trade debt current and support sales growth. Lighthouse was able to structure an aggressive facility against accounts receivable, inventory, and machinery & equipment that paid out the existing lender in full and created significant working capital availability.
"Due to economic conditions, we needed to consolidate our operations back to Atlanta. This resulted in an unsteady cash flow as we right-sized our business. Lighthouse really took the time to understand the circumstances related to our turnaround and structured a credit facility that helped us catch up on payments to vendors and aggressively pursue new sales opportunities," said Steve Sheppard, CEO.
Lighthouse Financial Corp. is a commercial finance company that provides accounts receivable, inventory, and equipment financing to small to midsized businesses with loans between $500,000 and $5 millino. Businesses financed include manufacturers, distributors, wholesalers and service companies located in the eastern half of the United States. Lighthouse loans are typically used to fund growth and expansion, financial restructuring and refinancing, debtor-in possession financing, acquisitions, partner or shareholder buy-outs and business turnarounds. Client companies generally have annual sales of between $4 million and $50 million.